Question

To analyze the economic condition, you collect the following yields: U.S. T-bill = 9%, 5- year U.S. T-note = 8%, IBM common stock = 15%, IBM Corporate Bond (Moody's rating Aaa) = 14%, and 10-year U.S. T-bond = 6.5%. Based on the above information, the shape of the yield curve is
a. upward sloping.
b. downward sloping.
c. flat.
d. normal.

Answer

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